Common-Size Income Statement
Quarterly Data

McDonald’s Corp., common-size consolidated income statement (quarterly data)

3 months ended:	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Revenues from franchised restaurants	61.87%	61.49%	61.50%	61.66%	61.57%	61.47%	61.96%	59.57%	60.71%	60.35%	60.39%	60.47%	60.54%	60.83%	61.50%	62.52%	61.67%	57.59%	56.44%	56.60%	56.15%	56.15%
Sales by Company-owned and operated restaurants	35.57%	35.55%	36.20%	36.21%	35.92%	35.80%	36.16%	38.64%	37.92%	38.17%	38.62%	38.20%	38.28%	37.71%	37.26%	36.18%	36.95%	40.64%	42.25%	41.90%	42.27%	42.18%
Other revenues	2.56%	2.96%	2.30%	2.13%	2.51%	2.74%	1.88%	1.79%	1.37%	1.48%	0.99%	1.33%	1.19%	1.46%	1.23%	1.30%	1.38%	1.77%	1.31%	1.49%	1.58%	1.67%
Revenues	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Franchised restaurants-occupancy expenses	-9.58%	-10.37%	-9.67%	-9.41%	-9.56%	-10.41%	-9.92%	-9.40%	-9.69%	-10.16%	-9.88%	-9.35%	-9.51%	-10.14%	-9.92%	-10.03%	-10.29%	-10.31%	-9.85%	-9.56%	-9.84%	-11.15%
Company-owned and operated restaurant expenses	-30.12%	-31.18%	-30.82%	-30.69%	-30.37%	-31.21%	-30.96%	-32.71%	-31.96%	-32.99%	-32.39%	-31.90%	-32.19%	-32.61%	-31.59%	-30.31%	-30.95%	-34.58%	-34.95%	-34.00%	-34.32%	-35.47%
Other restaurant expenses	-2.30%	-2.55%	-2.00%	-1.91%	-2.18%	-2.35%	-1.53%	-1.51%	-1.06%	-1.10%	-0.70%	-1.02%	-0.88%	-1.06%	-0.97%	-0.98%	-1.01%	-1.28%	-0.93%	-1.11%	-1.16%	-1.31%
Gross margin	58.01%	55.90%	57.51%	58.00%	57.90%	56.03%	57.58%	56.38%	57.29%	55.75%	57.04%	57.73%	57.42%	56.18%	57.52%	58.69%	57.75%	53.84%	54.27%	55.33%	54.68%	52.07%
Depreciation and amortization	-1.56%	-1.70%	-1.76%	-1.71%	-1.55%	-1.80%	-2.13%	-1.62%	-1.56%	-1.60%	-1.41%	-1.44%	-1.47%	-1.68%	-1.54%	-1.59%	-1.63%	-1.64%	-1.44%	-1.36%	-1.41%	-1.48%
Other	-9.95%	-9.94%	-10.69%	-9.38%	-8.70%	-9.65%	-10.39%	-7.80%	-9.09%	-10.08%	-11.41%	-8.72%	-8.73%	-9.38%	-12.15%	-9.82%	-10.69%	-10.31%	-12.57%	-9.02%	-9.72%	-9.57%
Selling, general & administrative expenses	-11.51%	-11.65%	-12.44%	-11.09%	-10.24%	-11.45%	-12.52%	-9.41%	-10.65%	-11.69%	-12.82%	-10.16%	-10.20%	-11.07%	-13.70%	-11.40%	-12.31%	-11.95%	-14.01%	-10.38%	-11.13%	-11.05%
Other operating income (expense), net	0.52%	1.06%	-0.03%	0.52%	-0.42%	-0.12%	-0.16%	-0.58%	-1.65%	0.29%	-0.48%	0.37%	0.55%	-2.18%	-0.24%	-0.21%	-15.50%	-1.07%	-0.37%	3.21%	2.16%	3.50%
Operating income	47.02%	45.31%	45.03%	47.43%	47.23%	44.46%	44.90%	46.38%	44.99%	44.35%	43.74%	47.94%	47.77%	42.94%	43.58%	47.07%	29.93%	40.82%	39.89%	48.16%	45.71%	44.52%
Interest expense	-5.76%	-6.14%	-5.85%	-5.74%	-5.70%	-6.31%	-5.95%	-5.54%	-5.75%	-6.03%	-5.62%	-5.09%	-5.08%	-5.59%	-5.45%	-5.21%	-5.08%	-5.07%	-4.92%	-4.74%	-5.04%	-5.85%
Nonoperating income (expense), net	0.10%	-0.17%	0.16%	-0.03%	0.28%	0.97%	0.78%	0.52%	0.12%	0.73%	1.14%	0.84%	0.66%	1.09%	1.33%	1.34%	-0.21%	-8.54%	0.10%	-0.02%	-0.32%	-0.56%
Income before provision for income taxes	41.36%	39.01%	39.34%	41.66%	41.81%	39.12%	39.73%	41.36%	39.37%	39.05%	39.26%	43.69%	43.35%	38.44%	39.47%	43.19%	24.64%	27.20%	35.08%	43.40%	40.35%	38.10%
Provision for income taxes	-8.09%	-8.58%	-8.46%	-9.48%	-8.88%	-7.76%	-8.16%	-8.56%	-8.21%	-7.78%	-7.43%	-9.06%	-7.79%	-7.88%	-7.35%	-9.44%	-3.87%	-7.71%	-7.80%	-8.73%	-2.66%	-8.11%
Net income	33.27%	30.43%	30.88%	32.18%	32.92%	31.36%	31.57%	32.81%	31.16%	31.27%	31.83%	34.62%	35.56%	30.56%	32.12%	33.75%	20.78%	19.49%	27.27%	34.67%	37.69%	30.00%

A structural transition in the revenue model is evident, characterized by a strategic shift toward franchised operations. From early 2021 to mid-2026, revenues from franchised restaurants increased from approximately 56% to nearly 62%, while sales from company-owned and operated restaurants declined from 42% to roughly 35%. This movement indicates an asset-light strategy intended to reduce direct operational exposure and leverage royalty-based income streams.

Gross Margin and Direct Costs: Gross margins exhibited an upward trend, rising from 52.07% in March 2021 to consistently fluctuate between 56% and 58% throughout the latter half of the period. This improvement is largely attributed to the reduction in company-owned restaurant expenses, which decreased from a peak of 35.47% to a range of 30% to 31%. Franchised occupancy expenses remained relatively stable, generally oscillating between 9% and 11% of total revenues.
Operating Efficiency: Operating income remained robust, typically ranging between 43% and 48%, despite a significant anomaly in June 2022 where operating income dipped to 29.93% due to a sharp spike in other operating expenses. Selling, general, and administrative (SG&A) expenses showed moderate volatility, averaging between 10% and 13%. The stability of these costs relative to the shift in revenue mix suggests effective overhead management during the transition to a more franchised model.
Financial Obligations and Tax Impact: Interest expenses remained a consistent drag on profitability, typically consuming between 5% and 6% of total revenues. Non-operating income and expenses showed high volatility, particularly in 2022, but neutralized over the long term. The provision for income taxes fluctuated significantly, often ranging from 7% to 9%, impacting the final net margin.
Net Profitability Trends: Net income as a percentage of revenue demonstrated high variance in the initial years, ranging from 19.49% to 37.69%. However, from 2023 through 2026, profitability stabilized, consistently settling between 30% and 33%. This stabilization suggests that the company has reached a more predictable earnings phase following the structural realignment of its restaurant portfolio.

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McDonald’s Corp. (NYSE:MCD)

Common-Size Income StatementQuarterly Data

Common-Size Income Statement
Quarterly Data